Information and Human Capital Managment

34 Pages Posted: 13 Oct 2008

See all articles by Heski Bar-Isaac

Heski Bar-Isaac

University of Toronto - Rotman School of Management

Clare Leaver

University of Oxford

Ian Jewitt

University of Oxford - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 2007

Abstract

An increasingly important organisational design problem for many firms is to recoupgeneral human capital rents while maintaining attractive career prospects for workers. Weexplore the role of information management in this context. In our model, an informationmanagement policy determines the statistic of worker performance that will be availableto outside recruiters. Choosing different statistics affects the extent of regression to the mean which, we show, in turn affects the incidence of adverse selection among retained and released workers. Using this observation, we detail how optimal information management policies vary across firms with different human capital management priorities. This view of human capital management via information management has strong implications for labour market outcomes. We discuss the impact on average wages, wage inequality, wage skewness and labour turnover rates.

Keywords: human capital, information disclosure, regression to the mean, adverse selection, turnover, wage distribution, human resource management

Suggested Citation

Bar-Isaac, Heski and Leaver, Clare and Jewitt, Ian D., Information and Human Capital Managment (October 2007). NYU Working Paper No. 2451/26059, Available at SSRN: https://ssrn.com/abstract=1281941

Heski Bar-Isaac (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416 978 3626 (Phone)

HOME PAGE: http://https://sites.google.com/site/heskibarisaac/home

Clare Leaver

University of Oxford ( email )

Department of Economics
Manor Road Building
Oxford, Oxfordshire OX1 3UQ
United Kingdom
44(0)1865 271952 (Phone)

Ian D. Jewitt

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44 1865 278698 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
328
Abstract Views
2,034
Rank
168,274
PlumX Metrics